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> Old school startup models lock up too much capital. I've gotten in debates here on HN before about this, but a VC's job is literally to multiply capital. Cry

by dvt 4y ago

> Old school startup models lock up too much capital. I've gotten in debates here on HN before about this, but a VC's job is literally to multiply capital. Crypto has been extremely good for business (and, more key, for the numbers). I honestly don't see how anyone takes issue with a16z dumping on crypto bros any more than a16z over-funding a startup which, in turn, completely obliterates their competition. Not to mention SPACs that have been doing basically the exact same thing, as well. I have as much sympathy for degenerate crypto gamblers as I did for Citadel Capital.

JumpCrisscross 4y ago
> don't see how anyone takes issue with a16z dumping on crypto bros any more than a16z over-funding a startup which, in turn, completely obliterates their competition One of these is securities fraud.
- dvt 4y ago
  Until Ripple v. SEC is settled, this is hypothetical.
rileyphone 4y ago
VCs job is also to maintain a reputation for good investments. Now, founders will rationally devalue investments from a16z lest they be associated with such unsavory company, even if they aren’t crypto-related. Especially if these kinds of party rumors keep going around.
- dvt 4y ago
  > Now, founders will rationally devalue investments from a16z No, they won't. Non-profits were gladly taking donations from Pablo Escobar, and you're telling me startups are going to say "no" to early funding rounds because a16z is too "unsavory."
senko 4y ago
> a VC's job is literally to multiply capital. That's literally everyone's job in investing. You think a pension fund or an ETF serves a different purpose? Venture Capital's job is to do that by providing capital for risky ventures (it's in the name), not by financing pump and dump schemes. > Crypto has been extremely good for business So were subprime mortgages, until the moment they weren't.
- dvt 4y ago
  > That's literally everyone's job in investing. You think a pension fund or an ETF serves a different purpose? Yeah, if you completely ignore risk profiles. VCs have extremely high risk appetites and comparing them to pension funds is in bad faith.

by dvt 4y ago

JumpCrisscross 4y ago

> don't see how anyone takes issue with a16z dumping on crypto bros any more than a16z over-funding a startup which, in turn, completely obliterates their competition One of these is securities fraud.

dvt 4y ago
Until Ripple v. SEC is settled, this is hypothetical.

rileyphone 4y ago

VCs job is also to maintain a reputation for good investments. Now, founders will rationally devalue investments from a16z lest they be associated with such unsavory company, even if they aren’t crypto-related. Especially if these kinds of party rumors keep going around.

dvt 4y ago
> Now, founders will rationally devalue investments from a16z No, they won't. Non-profits were gladly taking donations from Pablo Escobar, and you're telling me startups are going to say "no" to early funding rounds because a16z is too "unsavory."

senko 4y ago

> a VC's job is literally to multiply capital. That's literally everyone's job in investing. You think a pension fund or an ETF serves a different purpose? Venture Capital's job is to do that by providing capital for risky ventures (it's in the name), not by financing pump and dump schemes. > Crypto has been extremely good for business So were subprime mortgages, until the moment they weren't.

dvt 4y ago
> That's literally everyone's job in investing. You think a pension fund or an ETF serves a different purpose? Yeah, if you completely ignore risk profiles. VCs have extremely high risk appetites and comparing them to pension funds is in bad faith.